Change Your KiwiSaver Contribution Rate

Q: What rates can I choose for KiwiSaver?

3.5%, 4%, 6%, 8%, 10%. The default is 3.5% and that is also the minimum. 3% exists but is not freely selectable: it requires an approved temporary rate reduction.

Q: How do I change my KiwiSaver contribution rate?

Three ways: tell your employer in writing, which can be an email, a letter or a KS2 form; change it in myIR under your KiwiSaver account; or contact your KiwiSaver provider. All you need is your IRD number and the rate you want.

Q: Does changing my rate change what my employer contributes?

No. The compulsory employer contribution is 3.5% of your gross pay whichever rate you choose. Raising your own rate does not raise theirs, and lowering yours does not lower theirs.

Q: Can I stop KiwiSaver contributions instead of lowering the rate?

Yes, through a savings suspension, which pauses deductions for 3 to 12 months. The difference is that a suspension also stops the employer contribution, whereas lowering your rate to 3.5% keeps all of it.

Moving between the five employee rates takes one written message. The rules on timing, and what the change actually does to your payslip. Current for the 2026–27 tax year.

You can change your KiwiSaver contribution rate once every 3 months, or sooner if your employer agrees. The rates are 3.5%, 4%, 6%, 8%, 10%. Tell your employer in writing, change it in myIR, or contact your provider. It applies from the next pay your employer calculates.

What each rate leaves in your pay

The question behind a rate change is not what the contribution is, it is what the payslip does. On $70,000 a year on tax code M, with no student loan:

Take-home pay at each KiwiSaver rate on $70,000 a year
Rate	Your contribution	Take-home a year	Per fortnight
3.5% (default)	$2,450.00	$53,104.50	$2,042.48
4%	$2,800.00	$52,754.50	$2,029.02
6%	$4,200.00	$51,354.50	$1,975.17
8%	$5,600.00	$49,954.50	$1,921.33
10%	$7,000.00	$48,554.50	$1,867.48

Moving from 3.5% to 10% costs $175.00 a fortnight in take-home and puts $4,550.00 more a year into your fund. The employer column is deliberately absent from this table, because it does not move.

The three ways to change it

Routes for changing a KiwiSaver contribution rate
Route	What it involves	Who tells your employer
Your employer	In writing: an email, a letter, or a KS2 form	You do, directly
myIR	KiwiSaver account, 'Change KiwiSaver Contribution Rate' under 'more'	Inland Revenue does
Your scheme provider	Contact them and ask	Inland Revenue does

All you need is your IRD number and the rate you want. Telling your employer directly is the fastest, because the other two routes add a notification step before payroll sees it.

The change is not backdated

Your employer applies the new rate from the next pay they calculate, not the next pay you receive. Payroll is often run several days before payday, so a change sent on the Monday of a pay week frequently misses that cycle and starts the one after. If the timing matters, send it early in the pay period rather than at the end of it.

Moving from 3.5% to 6% on $70,000

1.Contribution at 3.5%The default rate$2,450.00
2.Contribution at 6%$4,200.00
3.Extra going into your fund each year$1,750.00
4.Take-home given up each fortnightLess than the contribution, because the deduction lowers nothing else$67.31
Employer contribution before and after$1,715.00 either way

Going below the default rate

3.5% is the floor for a rate you can simply choose. The 3% rate exists, but it is not on the menu:

It has to be approved. A temporary rate reduction is an application, not a selection. Writing 3% on a form does not make it your rate.
It runs 3 to 12 months. It is temporary by design, and it has to be reapplied for each year to continue.
Your employer keeps contributing at 3.5%. A reduced employee rate does not reduce theirs.

If the goal is to stop contributions rather than shrink them, a KiwiSaver savings suspension is the mechanism, and it stops the employer contribution as well.

Two things a rate change does not do

It does not change your employer's contribution. 3.5% of gross, at every rate. On $70,000 that is $1,715.00 reaching your fund after ESCT, whether you contribute 3.5% or 10%.
It does not change your tax.A KiwiSaver deduction comes out of pay that has already been taxed, so your PAYE, ACC earners' levy and student loan deduction are identical at every rate. Only the take-home line moves.

One thing it can affect: the KiwiSaver government contribution. That is paid on what you contribute, so a lower rate on a lower salary can fall short of the amount needed to collect the full entitlement.

KiwiSaver contribution ratesWhat each rate contributes, and the employer column
KiwiSaver savings suspensionPausing rather than lowering, and what it costs
KiwiSaver government contributionWhat your contributions need to reach
KiwiSaver employer contributionThe figure your rate never moves

Common questions

How often can I change my KiwiSaver contribution rate?

Once every 3 months, unless your employer agrees to a shorter gap. There is no limit on how many changes you make over a working life, only on how close together they can fall. An employer can always say yes to an earlier change, and many will.

What rates can I choose for KiwiSaver?

3.5%, 4%, 6%, 8%, 10%. The default and the minimum are both 3.5%. A 3% rate exists but cannot simply be picked. It requires an approved temporary rate reduction, which is covered below.

How do I change my KiwiSaver contribution rate?

Three ways, and all of them work. Tell your employer in writing, which can be an email, a letter or a KS2 form. Change it in myIR under your KiwiSaver account. Or contact your scheme provider. You need your IRD number and the rate you want, and nothing else.

When does a KiwiSaver rate change take effect?

From the next pay your employer calculates after they receive notice. It is not backdated. If you change it through myIR or your provider, Inland Revenue notifies your employer, which adds a step, so a change made close to payday usually lands the pay after.

Does changing my rate change what my employer contributes?

No, and this is the most common misconception about KiwiSaver. The KiwiSaver employer contribution is 3.5% of your gross pay whichever rate you pick. Raising yours does not raise theirs. Lowering yours does not lower theirs either, so dropping to 3.5% costs you nothing in employer money.

Can I stop KiwiSaver contributions instead of lowering the rate?

Yes, through a KiwiSaver savings suspension. The difference matters: a suspension stops your employer's contribution as well, while dropping to 3.5% keeps every dollar of it. On $70,000 that is $1,715.00 a year you keep by lowering rather than pausing.

Where these figures come from

2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.

KiwiSaver contribution ratesEvery rate, and what each one contributes
KiwiSaver savings suspensionStopping altogether rather than lowering
KiwiSaver employer contributionThe part your rate does not affect
KiwiSaver government contributionWhat your rate needs to clear to collect it
take-home pay calculatorYour own pay at each rate